CV Sciences reported third‑quarter 2025 results that saw revenue fall 16% to $3.3 million, a decline driven by out‑of‑stock issues and regulatory headwinds that limited sales of its core CBD products.
Gross margin improved to 48.5% from 46.0% in the same quarter last year, a gain largely attributable to lower freight costs and a shift toward higher‑margin product lines, including the newly launched Ignite men’s performance formula. However, the margin slipped from 50.9% in Q2 2025, reflecting higher operating costs in newly acquired subsidiaries.
Operating loss widened to $0.3 million and net loss to $0.5 million, matching the figures from Q3 2024. The company’s adjusted EBITDA swung to a $118,000 loss, a deterioration from the $75,000 loss in Q3 2024 and the $59,000 profit in Q2 2025, underscoring the impact of inventory shortages and regulatory uncertainty on profitability.
Direct‑to‑consumer sales accounted for 45.2% of revenue in Q3 2025, while wholesale and other channels made up the remainder. The company highlighted that out‑of‑stock issues for key products and restrictive state regulations were the primary drivers of the revenue decline, a challenge that management expects to mitigate as regulatory clarity improves.
CEO Joseph Dowling said the company remains focused on navigating the evolving regulatory landscape, noting that the restrictive federal hemp language will not take effect for another year. CFO Joerg Grasser emphasized ongoing cost‑saving initiatives and expressed confidence that the company will generate positive operating cash flow in 2026.
Investors reacted negatively to the earnings, citing the revenue decline, widening loss, and limited cash balance of $0.4 million as concerns for short‑term liquidity.
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